Taiwan's Hon Hai Pulls-Out of Huawei Deal After Government Warning

Advertisement
By Agence France-Presse | Updated: 2 July 2014 22:00 IST

Taiwan tech giant Hon Hai said on Wednesday it has pulled out of a deal to buy 4G equipment from Huawei after the government warned that the Chinese company posed a national security threat.

Taiwan raised those concerns in March after Hon Hai announced the $178 million deal, saying telecom equipment purchased from Huawei could be used for cyber espionage.

Advertisement

Ambit Microsystems, a company affiliated with Hon Hai, had applied for permission from the telecom regulator to import Huawei equipment after it won a 4G spectrum license.

But Ambit on Monday pulled out of the deal with Huawei, which offers cheaper products than rivals such as Nokia.

Advertisement

(Also Read: Hon Hai, Pegatron on China Hiring Spree for Next iPhone: Reports)

"Ambit respects the cautious position of the government regarding national security, so we resubmitted our application on June 30 excluding any mainland-manufactured equipment," the company said in a statement.

Advertisement

Shenzhen-based Huawei has for years faced accusations that it is a potential security Trojan Horse due to perceived close links to the Chinese government, which it denies.

It has been barred from involvement in broadband projects in the United States and Australia over espionage fears.

Advertisement

"Authorities have voiced national security concerns about Huawei," Liang Wen-hsin, a spokesman for telecom regulator National Communications Commission (NCC), told AFP.

Taiwan and former rival China, split in 1949 at the end of a civil war, are still technically at war despite eased tensions since 2008 after Ma Ying-jeou of the Beijing-friendly Kuomintang party came to power. He was re-elected in January 2012.

(Also Read: EU and South Korea to Jointly Research 5G Mobile Wireless Technology)

Huawei was founded in 1987 by Ren Zhengfei, who was an engineer in the People's Liberation Army.

Besides network equipment, it has moved into consumer electronics and is the world's third-largest seller of smartphones.

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: 4G, Hon Hai, Huawei, Internet, Telecom
Advertisement

Related Stories

Popular Mobile Brands
  1. RedStone Launches Settlement Layer for RWA-Backed DeFi Lending
  2. YouTube's 'Ask YouTube' AI Chatbot Offers Smart Replies With Videos, Shorts
  3. Here's When the OnePlus Nord CE 6, CE 6 Lite Will Go on Sale in India
  4. AirDrop via Quick Share Expands to These Two Smartphone Brands
  1. AirDrop via Quick Share Reportedly Expands to Oppo Find X9 Ultra, Vivo X300 Ultra
  2. OpenAI, Amazon Announce Multi-Year Strategic Partnership as Microsoft’s Exclusive Deal Ends
  3. US Judge Rejects Former FTX CEO Sam Bankman-Fried’s Bid for New Trial
  4. Valve Says It's 'Hard at Work' on Steam Deck 2
  5. OnePlus Nord CE 6, Nord CE 6 Lite Availability Details Announced Ahead of May 7 Launch Date
  6. Smartphone Buyers in India Prioritise AI and Real-World Usage, Flipkart Report Shows
  7. Google Pixel 11 Series’ Tensor G6 Chipset Could Be Significantly Faster Than Last Year’s Tensor G5 SoC, Leak Suggests
  8. Oppo Reno 16 Pro Key Specifications Leaked; Tipped to Launch in H2 2026
  9. Samsung Galaxy S27 Tipped to Arrive With Redesigned Camera Layout to Accomodate Qi2 Magnetic Charging
  10. Anthropic’s Claude Can Now Complete Creative Tasks in Adobe, Blender and Autodesk
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.